Select a manufacturing type of business near where you live, or a manufacturing business being run by someone you know near where you live. The business must have inventory. Select a business that manufactures a product of personal or professional interest to you. (For example, Ford; Apple; GM; etc. would be a good choice.)

Address the following issues on the business you have chosen.

1. A brief summary of the type of business you have decided to analyze, including the name of the business, location of the business, and the business model (i.e. how does this business add value and generate profit?).
2. Describe in detail a list of expenses that the business incurs which are fixed, variable, or mixed. Be specific.
3. Add a column to the above list of expenses and describe which expenses are product or period expenses, and why.
4. Discuss what you know about inventory management, what are some important considerations regarding inventory management that apply to the business you are analyzing? Be specific.
5. Assume the business you have chosen suddenly had an unanticipated very large increase in business. Which of the fixed expenses you described above would have to be increased to support this unanticipated increase and business, and why?
6. Assume the business you have chosen suddenly had an unanticipated large decrease (downturn) in business. Which of the above variable and fixed expenses could be adjusted downward, accordingly, to keep the business profitable until the business recovers, how, and why?